The book of offers for the issuance of a new ten-year bond has opened. This is the first exit of the Greek State in the markets for 2022, with the aim of raising about 3 billion euros.

The initial interest rate on the new Greek bond stood at 145 basis points plus the mid swap (44 points), ie 1.89%.

The rating agencies

The best performance for 2021 comes a few days after the upgrade of the prospects of the Greek economy by the rating agency Fitch and the package of positive news paves the way for the preparation of the new exit of Greece in the markets and the first of the year, with an amount close to 3 billion.

According to sources in the Ministry of Finance, the estimates now bring the deficit below 7% for 2021 and thus further improve the debt picture – especially if the estimates for a recovery of more than 7% are confirmed. Regarding 2022, a source from the Ministry of Finance states that the target of 1.4% of GDP for the primary deficit remains and expressed optimism for the course of the pandemic, while in fact he estimated that the main indicator is the course of natural gas.

The new title will expire in June 2032, with the aim of achieving an interest rate below 2%. It is noted that the 10-year bond issued in 2021 has a yield of 1.65% while it was issued with a historically low interest rate of 0.807% (at 0.888% the yield during the re-opening in June) and with a coupon of 0.75%.

The strategy

It is worth remembering that based on its planning, the Public Debt Management Agency (P.D.M.A.) will move this year with the aim of raising 12 billion euros, while in the second half of 2022 it is expected to proceed with the issuance of a “green” bond.

According to the financing strategy in 2022, it will focus on having a continuous presence in the international debt markets and reducing the debt / GDP ratio with active management, while preserving the large capital cushion (currently close to 37 billion. euro).

According to the plan, the loan needs amount to 24.8 billion euros. They concern bond repayments (8 billion), interest (4.7 billion), deficit financing (2.7 billion), early repayments (such as IMF, bilateral loans, and interest of 5.2 billion) and other liabilities ( 4.3 billion).

The financing in addition to the 12 billion that will be obtained from the markets will come from other sources, such as RFF, CEB, amounting to 4.2 billion, returns on profits from Greek bonds (ANFA) 1.3 billion euros, revenues privatizations of 0.7 billion euros, while the funds available in the “cushion” will be reduced by 6.6 billion euros.

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